Last week saw the Bank of England make its latest interest rate decision, which was to keep the base rate at 3.75%. Below is comment from Ben Nichols, Managing Director of RAW Capital Partners…
“There was some talk of a rate hike ahead of today’s decision, so the market will be breathing a small sigh of relief that it has held steady for now.
“The conflict in the Middle East has clearly added some upwards pressure to the inflation outlook, particularly around energy costs, but growth has to remain part of the conversation too.
“On that front, after a challenging few years, it’s encouraging to see the Bank avoid adding further pressure to the economy.
“For the property market, it also gives brokers and borrowers a bit more certainty in the short term. We’ve already seen some lenders start to reduce rates after initially pricing in more risk and, hopefully, today’s decision supports that trend and gives brokers and borrowers more confidence to move ahead with their plans.
“That said, the speed at which rates have risen since the start of the conflict has naturally affected sentiment, so lenders need to keep providing clarity and flexibility, while listening closely to the challenges brokers are seeing on the ground.”
